Ticket Pricing

The running of a sports franchise takes lots or resources, people, time, and organization. The first component to consider is ticket pricing. Owners need to sell seats, and they do this through tickets. However, one can't just price them as high as possible. Stadium owners, promoters, and consumers are involved in ticket selling. The owners must price the tickets directly correlating to the demand of seats. The fact that there is no marginal cost, or added cost from an added unit, means that the number of seats is fixed. The price of the tickets must, therefore, be based off supply and demand. In order to generate enough revenue to actually gain money from sports events, owners use something called yield management pricing, where better seats cost more. However, there are still obstacles that get in their way, such as ticket brokers. These are people who buy tickets in bulk and then resell them, driving up prices. Owners use ticket agencies, companies that manage their ticket sales, to help try and prevent damage from ticket brokers. Dynamic pricing, meaning not fixed costs, are advantages for consumers, as prices change with supply and demand. All of these elements must be examined when choosing the best prices your seats will go for in order to sell out and gain revenue.